Consequences of the non support of Swiss Franc by the Swiss National Bank (SNB)

Dear all, 

 With the end of the support of the Swiss Franc by the SNB (15/01/15), which was fixed at 1.2CHF for 1EUR, the SNB reduced one more time the 3 months Libor rate at -0.75%. 

This decision is droping all the rates up to 16 year in negative territory.

This situation, create an issue for big investor that need to pay the SNB if they want to leave their money in Switzerland. 

Even the Swiss government bond don’t generate interest, it’s a crazy world in my opinion.

 The consequences are multiples, new limitation for the real economy, important risk of rate variation, probable new consolidation of bank sectors and major repercussion Swiss saving system. 

 And now, what 2015 will give us, a lot of volatility, a major correction, a bear market? 

What are your thoughts? 

 Cheers, RA50


One thought on “Consequences of the non support of Swiss Franc by the Swiss National Bank (SNB)

  1. I think we’ll still have an up year this year. This ups and downs market benefits short traders. This market is also unique due to the world leaders are “smarter” or at least they use economist to run the country or as their close advisor. I give you an example:

    Oil supplies are outpacing the demand. the OPEC want to continue to have the bigger market share, refuse to cut production. As the result, oil price was at free falling. So, some government start bombing Syria a bit heavier. Oil price stop falling at $4x.xx, yo yo up to $5x.xx … then under $50 again. Then out of no where, The Saudia Arabia started bombing Yemen … oil of course move back up to above $50.

    In the meanwhile in the US, more and more news about fracking and earthquakes that have been blocked from the media for years, starting to surfacing (curbing production).

    Anyhow, it is a different world that we are experiencing.


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